SARS introduced enhancements to the Income Tax Return for Companies (ITR14) on 9 December 2016.

Only the new return will be accepted after 9 December 2016 and where a taxpayer has captured and saved an ITR14 prior to Friday 9 December 2016, the taxpayer would need to open the return which will then be replaced with a new ITR14 return based on the rules applicable for that year of assessment. ]

Changes to the ITR14

Legal enhancements:

  • For the year of assessment (YOA) commencing on or after 1 January 2016, foreign tax credits cannot be claimed as a rebate in terms of section 6quin due to the fact that this section has been repealed. However, taxpayers can now claim this type of foreign tax credit as a deduction in terms of section 6quat (1C).
  • As from 1 March 2016, all qualifying companies operating within a Special Economic Zones (SEZ) will be taxed at a rate of 15% which is lower than the current corporate tax rate of 28%.
  • A question has been added on the return wizard for a company to indicate if it has changed its residency status and if it has, from what date.

Return enhancements:

  • Dormant companies: The “Dormant Company Details” container now makes provision for dormant companies carrying on the activities of a nominee to declare taxable passive income received or accrued. Please note that it is a legal requirement to submit a tax return even if the company is dormant.
  • The ITR14 return now has an option to indicate if the financial year end of the company changed during the relevant year of assessment.
  • The containers for Local and Foreign Capital Gains and Losses now make provision for a new line item with a new source code for the “claw back” provisions in terms of section 45(5).
  • A new field has been added to the “Non-Residency” container to indicate the date on which the company ceased to be a resident if applicable.
  • IRP5 data will be pre-populated and locked. If you have more than twenty IRP5’s the twentieth one will not be locked, you can make changes on it.

You might also be interested in

Expat Tax starting 1 March 2020 for SA

Expat Tax starting 1 March 2020 for SA

Starting March 1st, 2020, South Africa’s new Expat Tax laws come into effect. What does this mean for SA citizens living and working abroad? Here are some basic points – the things you need to know: Review: The Residence-based tax system – the ‘days rule’:   In...

read more
Upcoming Budget Expectations for 2020

Upcoming Budget Expectations for 2020

It’s that time of year again. We’ve been waiting with bated breath for the 2020 Budget announcements. Waiting with hope, but also prepared to get irate about a few things – as usual. Well, here are the facts: Let’s start with the ‘big one’: VAT. VAT increase - not in...

read more
SVDP for Special Offshore Tax Structures

SVDP for Special Offshore Tax Structures

Thanks to tax benefits (among other benefits) off-shore company registrations and structures have always been ideal for: Import-export companies International trading companies Asset holding companies Family and other trusts Other property investments Intellectual...

read more